Nigeria Seeks $10bn Investment in Oil & Gas

The Federal Government’s goal is to attract approximately $10 billion in investment by implementing consolidated guidelines for the oil and gas sector. These guidelines are central to Presidential Directives and they  aim to improve the global competitiveness of Nigeria’s oil and gas industry while stimulating economic growth. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, oversaw the signing of the guidelines at the Federal Ministry of Finance headquarters in Abuja.

According to a statement from the ministry, the Presidential Directives, spearheaded by the Special Adviser to the President on Energy, Mrs. Olu Verheijen, were crafted to establish a competitive framework for the Nigerian oil and gas sector. The development of these consolidated guidelines involved extensive collaboration across ministries, including Finance and Petroleum, and various regulatory bodies such as the Federal Inland Revenue Service, the Nigerian Upstream Petroleum Regulatory Commission, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

Verheijen explained that the new measures aim to ensure a competitive Internal Rate of Return for Oil and Gas Projects and to attract over $10 billion in new investments within the next 12-18 months. These measures also demonstrate Nigeria’s commitment to achieving its long-term oil production target of 4 million barrels per day and enhancing the reliability of gas supply to boost export earnings and fuel industrialization efforts.

Among the guidelines signed are those addressing the categorization and quantification of hydrocarbon liquid content in Non-Associated Gas (NAG) Fields, the applicability of tax credits and allowances for Non-Associated Gas Greenfield Development, and the Midstream Capital and Gas Utilization Allowance. These guidelines provide clarity to taxpayers on the computation of benefits related to these areas.

In his statement, Edun expressed appreciation to President Bola Tinubu for endorsing the directive in February 2024, aimed at revitalizing the Nigerian oil and gas sector after a decade of stagnation. He highlighted the guidelines’ potential to foster an environment becoming to international competitiveness and attract foreign direct investment.